India: BMW to invest 3b rupees in Bokaro by December next year

The Times of India (Bokaro, India) - BMW Industries Limited (BMW) on Friday announced the setting up of a new mini steel plant with an investment of around Rs 300 crore in the Bokaro Industrial Area (BIA) here.

The construction work of the plant has begun on the allotted 90 acres of land. The company aims to complete the construction work and begin steel production by 2012, December. "The construction of the plant was started on July 7 and is expected to be completed in 18 months. Initially, we will produce 0.5 million tonne (MT), which will be later extended to one million tonne," said Pius Thomas, executive director, BMW industries.

He said the company will directly generate employment for 500 people and indirectly more than 2,000 persons will be benefited. However, priority will be given to recruiting skilled workers. BMW belongs to R G Bansal, a Kolkata-based industrialist, who is running a processing unit of prime materials in collaboration with the SAIL, on 11 acres of land at BIA, said Thomas.

He added that BMW has two more steel facilities in Kolkata and one more is going to come up in Jamshedpur. "The upcoming steel facility in Bokaro will boast the latest Italian technology based rolling mill. BMW will be the first in the country to launch a hi-tech rolling mill which will not only be eco-friendly but also provide the maximum output and quality with cost savings," said Thomas.

He said all formalities have been fulfilled to launch the steel plant. The plant will have steel manufacturing units besides a rolling mill. The running of the steel facility will require 30 MW electricity, for which they have tied up with the Jharkhand State Electricity Board. "The company will initially produce rebars and structures and later enhance its product range," he said.

The district is coming up as a steel hub. Like BMW, many other steel giants are making their way here. Arcelor Mittal is going to set up its 12 million tonne steel plant in Kasmar, while the world's second largest steel major Posco, plans to set up a steel plant under a joint venture with SAIL.